What Happens on Closing Day? A Complete Guide

Closing day is the grand finale of the home-buying process, and it's a day filled with both excitement and nerves. But what exactly happens on this pivotal day? In this blog post, we'll walk you through the key events and what you can expect.

Before Closing Day

1. Final Walkthrough: Usually conducted the morning of closing up to 24 hours before closing, this is your last chance to ensure the property is in the agreed-upon condition. We will need to verify that the house is clear and free of the sellers personal property and in a swept clean condition. 
2. Review Closing Documents: Make sure to review all the documents you'll be signing in advance. BUYERS - The lender will send over the Closing Disclosure (CD) 72 hours prior to closing. SELLERS - The closing attorney will send you a copy of the ALTA settlement sheet to verify the contract information is correct. Pro tip: Make sure the sales price, seller concessions and mortgage payoff are correctly reflected on the ALTA.

The Big Day

For the Buyer

1. Signing the Mortgage: You'll sign a series of documents, including the mortgage agreement. The entire process takes about 1 hour.
2. Down Payment and Closing Costs: Be prepared to make these payments via certified check or wire transfer. Pro tip: AVOID WIRE FRAUD - Make sure to call the title office before wiring any funds over to make sure that the routing and account numbers are correct.

For the Seller

1. Property Transfer: Once the buyer's payment is confirmed, the property title is transferred to the buyer. This is done via the Deed. Once the deed is signed, it is the instrument that conveys the property over to the new homeowners. 
2. Receive Payment: The seller receives the proceeds from the sale, minus any outstanding mortgage and fees. Typically, takes a few hours to receive. The title company releases the funds once closing is complete. The holdup is typically with the receiving financial institution. 

After Closing

1. Keys Handover: The keys are officially handed over to the buyer.
2. Record of Sale: The sale is recorded in public records, finalizing the transaction.

Common Questions

• How long does it take?: Typically, 1-1.5 hours.
• Who should be there?: Both parties, their real estate agents, and often a closing agent or attorney.

Conclusion

Closing day is a significant milestone in the home-buying journey. Knowing what to expect can help you navigate the day with confidence and ease. So, take a deep breath, you're almost a homeowner!